Deere (DE) Surpasses Market Returns: Some Facts Worth Knowing

Deere (DE) closed the most recent trading day at $520.31, moving +2.35% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.

The agricultural equipment manufacturer's shares have seen a decrease of 0.93% over the last month, not keeping up with the Industrial Products sector's gain of 6.87% and the S&P 500's gain of 5.13%.

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The upcoming earnings release of Deere will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.6, reflecting a 26.87% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $10.21 billion, indicating a 10.32% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.82 per share and a revenue of $38.05 billion, indicating changes of -26.54% and -14.99%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Deere. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Deere currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Deere is at present trading with a Forward P/E ratio of 27.01. This valuation marks a premium compared to its industry average Forward P/E of 21.62.

Also, we should mention that DE has a PEG ratio of 3.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Farm Equipment industry had an average PEG ratio of 3.23.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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